SEC’s Gensler: Crypto should comply with securities laws

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As an analyst with over two decades of experience in financial markets, I find Gary Gensler’s latest statements to be a poignant reminder of his unwavering commitment to regulatory compliance and transparency. His tenure at the SEC has been marked by a steadfast approach towards enforcing existing policies, which, while challenging for the crypto industry, is a testament to his belief in maintaining robust financial markets.

In simpler terms, Gary Gensler, nearing the end of his tenure at the Securities and Exchange Commission (SEC), has once more emphasized that the cryptocurrency sector should adhere to current federal regulations.

According to Bloomberg, Gensler urged those involved in cryptocurrency to adopt compliance and transparency measures as part of his prepared remarks at the Practicing Law Institute’s 56th Annual Institute on Securities Regulation.

In a familiar position, the head of the U.S. Securities and Exchange Commission emphasized that the vast majority of the more than 10,000 cryptocurrencies fall under the category of securities. He made it clear that only Bitcoin (BTC), Ethereum (ETH), and stablecoins were exceptions to this general statement.

Additionally, Gensler acknowledged the assistance of the agency team in upholding federal laws that govern America’s financial markets, as he made concerted efforts to do so.

I’ve truly valued my time working alongside these individuals, striving to fulfill the needs of our constituents and maintain our global financial markets at the pinnacle.

Gary Gensler, SEC chair

The crypto community is accustomed to understanding the views of regulators. Some interpreted his remarks at the event as a sign of farewell. Despite his term not ending until 2026, the outcome of the U.S. presidential election could have strengthened his position as SEC chair. However, pro-crypto candidate Donald Trump won over Kamala Harris in the election, creating uncertainty about Gensler’s future at the SEC.

Trump’s plan includes dismissing the SEC chairman, as the incoming president has vowed to terminate Gensler on his inaugural day, effectively ending the administration’s efforts to regulate cryptocurrencies.

There’s ongoing discussion as to whether President Trump has the power to dismiss the head of the Securities and Exchange Commission (SEC) instantly. However, it is clear that if Trump were to extend a public invitation, the SEC chairman and other heads of federal agencies might consider resigning from their positions.

At the time of the press release, it was unclear if the chair of the SEC would resign following Trump’s inauguration. Some names being mentioned as possible replacements for the role within the Trump administration include Dan Gallagher, Chief Legal Officer at Robinhood, and Hester Peirce, a current commissioner at the SEC.

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2024-11-14 21:30